Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
[Addressee]
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 125648
Business Number: [...]
July 5, 2011
Dear [Client]:
Subject:
GST/HST RULING
Application of GST/HST to [...] [training] services
Thank you for your fax of July 2, 2010, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to [...] [(training)] and support services provided by [...] ("Corporation"). We apologize for the delay in responding to your enquiry.
HST applies at the rate of 15% in Nova Scotia, 13% in Ontario, New Brunswick, and Newfoundland and Labrador, and 12% in British Columbia. GST applies at the rate of 5% in the remaining provinces and territories.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
Statement of Facts
We understand that:
1. Corporation is a for-profit corporation located in [...] [City 1, Province X], and is registered for purposes of the GST/HST.
2. According to its website, Corporation [...].
3. Corporation provides [training] and support services for children with neurological or developmental disorders who require assistance with behavioural difficulties, social skills, verbal and non-verbal communication, personal care and day-to-day functioning. Corporation's services include the provision of counselling, training or coaching, support and respite services to parents and other caregivers of children with developmental disorders.
4. Corporation specializes in assisting children with [...] referred to herein as "developmental disorders".
5. Corporation offers its services [...]
6. The staff at Corporation includes [...].
7. Corporation receives the majority of its clients based on a referral by a paediatrician or a child psychiatrist who has diagnosed the child with one or more specific developmental disorders. Occasionally, a caregiver or coach who is looking for training to assist them in working with a child may acquire services from Corporation without a referral.
8. With each new client, Corporation will perform an assessment of the child's specific circumstances. The objectives of the assessment include: gathering information about the child's cognitive, physical and emotional status; determining how the child functions in a given environment (e.g., home, school and community); and ensuring that the nature of Corporation's services are appropriate for the child's circumstances. Based on the assessment, Corporation will set goals with the child, the parent or caregiver, and the child's family, and determine the nature of the services to be provided.
9. Corporation is generally compensated for its services through 'third party funding' in which a parent or caregiver of a child with a developmental disorder receives funding from the [...] [Provincial Ministry of Province X] ([Ministry 1]) or [...] [Provincial Ministry
of Province X] ([Ministry 2]), in relation to a particular program or service to be provided by Corporation, and then pays Corporation for its services. In some cases, Corporation may be paid directly by [Ministry 2] pursuant to a specific contract [...]. In limited circumstances, a parent, caregiver or coach will acquire the services of Corporation without receiving funding from [Ministry 1] or [Ministry 2].
10. [...] ([Activity A]) consists of child behavioural management, [...], assistance with personal care, parent coaching and respite services provided at [...]. The specific services to be rendered under [Activity A] are based on the individual needs of the child and the parent or caregiver, and are determined in accordance with the information included in the referral and obtained during Corporation's assessment of the child.
11. [A] may be [...]. Many of the children who take part in [Activity A] have been diagnosed with two or three developmental disorders.
12. In order for a parent or caregiver to obtain funding for a one to one in-home support worker under [...] program of [Ministry 1], a [...] must be completed.
13. As part of the intake process for [Activity A], an [...] document is prepared. This document is prepared by Corporation, in consultation with a parent or caregiver of the child, and describes the goals and expectations with respect to the delivery of services to a particular child. [...].
14. [...] ([Activity B]) is a [...] program in which children with developmental disorders [...] are encouraged to learn, improve and practise social skills in a variety of settings and situations with a group of their peers.
15. [Activity B] is run by Corporation staff [...].
16. Participants in [Activity B] are between the ages of [...]. All of the children who attend [Activity B] have at least one developmental disorder that the program is designed to assist with. [Activity B] is not offered to children without a disorder or disability or to other members of the general public.
17. According to [...], [Activity B] is based on assisting the children in meeting their goals [...]. The focus of the program is on ways to achieve their goals and learning how to transfer new skills [...]. At [Activity B], children are given opportunities [...]
18. [Activity B] is offered [...]
19. Corporation will attempt to place a child [...], as identified during the initial assessment of the child. The nature of [Activity B] itself also allows Corporation staff to design activities and instructional techniques to address the specific needs of the child.
20. All of the activities at [Activity B] are instruction-based [...]
21. The activities at [Activity B] are co-facilitated by [...] Corporation staff members who are [...]. With respect to a particular activity, [...] of the staff members will generally focus on assisting the children with the activity and the life-skills instruction that accompanies the activity, while the [...] staff members will be tasked with the administrative matters relating to the activities. [...].
22. [Activity B] includes [...]
23. Priority to attend [Activity B] is given to clients of Corporation who [...] need further development [...]. In some cases, paediatricians, schools and [...] also refer children to the Corporation [Activity B].
24. Parents cannot send their children to [Activity B] for respite care and supervision only.
25. [...] ([Activity C]) is a smaller version of [Activity B]. [...]
26. As with [Activity B], participants in [Activity C] are between the ages of [...] and have at least one developmental disorder that the program is designed to assist with. Often, the children who participate in this program come from a home environment with fewer resources and wouldn't otherwise have the opportunity to experience the types of activities and instruction offered at [Activity B].
27. [...] ([Activity D]) [involves] the delivery of training, coaching or instruction in social and behavioural skills [...]. The number of participants in [Activity D] varies; however, there are no more than [...] participants to each Corporation staff member.
28. [Activity D] differ[s] from [Activity C] and [Activity B] [...]; they generally have long-term objectives and are customized to address specific social or behavioural difficulties of the participants. [Activity D] consist[s] of [...] in which expectations and acceptable behaviour are discussed and individual goals are set, followed by the delivery of training or coaching [...].
29. Funding from [Ministry 1] or [Ministry 2] may be available for [Activity B], [Activity C] and [Activity D], where it can be demonstrated to [Ministry 1] or [Ministry 2] that, for purposes of a particular funding program, the Corporation programs are designed to assist with a child's specific developmental disorder.
30. The services offered by Corporation under [...] [Activity E] are designed to provide parents or other caregivers of children with [...]
31. Under [Activity E], the services may take place at [...] and are for periods that are normally less than 24hrs per day. The care and supervision provided under [Activity E] is primarily provided to children who are 14 years of age or under.
Ruling Requested
You would like to know how the GST/HST applies to the following supplies made by Corporation:
i. A supply of [training] and support services made under [Activity A];
ii. A supply of [training] services made under [Activity B];
iii. A supply of [training] services made under [Activity C];
iv. A supply of [training] services made under [Activity D];
v. A supply of respite care services made under [Activity E].
A GST/HST ruling is a written statement the Canada Revenue Agency (CRA) provides to a client that sets out the CRA's position on how the relevant provisions of the legislation apply to a clearly defined fact situation of the client. The CRA will issue a ruling only when all of the relevant facts of a transaction or series of transactions are available.
With respect to a supply of [training] services made under [Activity D] (item "iv" above), it will be necessary to evaluate each supply, on a case-by-case basis, to identify the facts surrounding that particular supply and to determine whether such a supply constitutes a supply of a training service that meets the requirements of section 14 of Part II of Schedule V. In this situation, we are unable to issue a ruling and our response is in the form of an interpretation (see "Interpretation Given" below).
Ruling Given
Based on the facts set out above, we rule that:
(i) A supply of [training] and support services made under [Activity A] is exempt from GST/HST under section 14 of Part II of Schedule V, provided one of the circumstances listed in paragraph (b) of section 14 exists;
(ii) A supply of [training] services made under [Activity B] is exempt from GST/HST under section 14 of Part II of Schedule V, provided one of the circumstances listed in paragraph (b) of section 14 exists;
(iii) A supply of [training] services made under [Activity C] is exempt from GST/HST under section 14 of Part II of Schedule V, provided one of the circumstances listed in paragraph (b) of section 14 exists;
(v) A supply of respite care services made under [Activity E] is exempt from GST/HST under section 1 of Part VI of Schedule V.
This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.
Explanation
Generally, most supplies of property and services made in Canada are taxable for GST/HST purposes, unless they are exempt supplies. Exempt supplies are listed in Schedule V to the ETA. In order for a supply of property or a service to be exempt from GST/HST, a specific exempting provision included in Schedule V must apply to that particular supply.
Section 14 of Part II of Schedule V
Applicable to supplies made after February 26, 2008, section 14 of Part II of Schedule V exempts a supply (other than a zero-rated supply or a prescribed supply) of a training service if
(a) the training is specially designed to assist individuals with a disorder or disability in coping with the effects of the disorder or disability or to alleviate or eliminate those effects and is given to a particular individual with the disorder or disability or to another individual who provides personal care or supervision to the particular individual otherwise than in a professional capacity; and
(b) one of the following circumstances exists:
(i) a person acting in the capacity of a practitioner, medical practitioner, social worker or registered nurse, and in the course of a professional-client relationship between the person and the particular individual, has certified in writing that the training is an appropriate means to assist the particular individual in coping with the effects of the disorder or disability or to alleviate or eliminate those effects,
(ii) a prescribed person, or a member of a prescribed class of persons, has, subject to prescribed circumstances or conditions, certified in writing that the training is an appropriate means to assist the particular individual in coping with the effects of the disorder or disability or to alleviate or eliminate those effects, or
(iii) the supplier of the training service
(A) is a government,
(B) is paid an amount to make the supply by a government or organization administering a government program targeted at assisting individuals with a disorder or disability, or
(C) receives evidence satisfactory to the Minister that, for the purpose of the acquisition of the service, an amount has been paid or is payable to a person by a government or organization administering a government program targeted at assisting individuals with a disorder or disability.
Generally speaking, section 14 of Part II of Schedule V provides that a supply of a training service is exempt from the GST/HST where the training is given to an individual with a disorder or disability or to a person who provides personal care or supervision to such an individual and where three conditions are met.
First, paragraph 14(a) requires that the training be 'specially designed' to assist an individual with a disorder or disability in coping with effects of the disorder or disability or to alleviate or eliminate those effects. A developmental disorder described in Fact #3 above is considered to be a "disorder or disability" for purposes of section 14.
The training does not have to be provided by a doctor, psychologist or other health care professional in order to be exempt under section 14; however, in accordance with section 15 of Part II of Schedule V, the training must not be similar to training ordinarily given to persons who do not have a disorder or disability and who do not provide care or supervision to an individual with a disorder or disability.
Second, paragraph 14(a) requires that the training be provided to an individual with the disorder or disability or to a person who provides personal care or supervision to such an individual otherwise than in a professional capacity (e.g., a parent or caregiver). In other words, the exemption in section 14 of Part II does not apply to training provided to persons who care for the individual with a disorder or disability in a professional capacity, such as teachers or personal care aides.
Third, in order for section 14 to exempt a supply of training that is specially designed to assist individuals with a disorder or disability, one of the requirements described in subparagraphs 14(b)(i) to (iii) must be met.
Subparagraph 14(b)(i)
Subparagraph 14(b)(i) requires that a practitioner, medical practitioner, social worker or registered nurse, in the course of a professional-client relationship, certify in writing that the training is an appropriate means to assist the particular individual in coping with the effects of the disorder or disability or to alleviate or eliminate those effects.
A "practitioner" is defined in section 1 of Part II of Schedule V in respect of a supply of optometric, chiropractic, physiotherapy, chiropodic, podiatric, osteopathic, audiological, speech-language pathology, occupational therapy, psychological, midwifery or dietetic services, to mean a person who
(a) practises the profession of optometry, chiropractic, physiotherapy, chiropody, podiatry, osteopathy, audiology, speech-language pathology, occupational therapy, psychology, midwifery or dietetics, as the case may be,
(b) where the person is required to be licensed or otherwise certified to practise the profession in the province in which the service is supplied, is so licensed or certified, and
(c) where the person is not required to be licensed or otherwise certified to practise the profession in that province, has the qualifications equivalent to those necessary to be so licensed or otherwise certified in another province."
A "medical practitioner" is defined in section 1 of Part II as a person who is entitled under the laws of a province to practise the profession of medicine or dentistry.
Accordingly, the requirement in subparagraph 14(b)(i) can be met where a practitioner, such as a provincially-licensed psychologist, a doctor, social worker or registered nurse, acting in the course of a professional-client relationship, certifies in writing that the training is an appropriate means to assist a child with a developmental disorder in coping with the effects of the developmental disorder or in alleviating or eliminating those effects.
Subparagraph 14(b)(ii)
Subparagraph 14(b)(ii) is currently of no application since nothing to date has been prescribed for purposes of this provision.
Subparagraph 14(b)(iii)
Subparagraph 14(b)(iii) sets out, in clauses 14(b)(iii)(A) to (C), three conditions of which only one must be met in order for subparagraph 14(b)(iii) to apply:
• the training is supplied by the federal, provincial or territorial government,
• the person who provides the training receives an amount to provide the training from the federal, provincial or territorial government or from an organization administering a government program targeted at assisting individuals with a disorder or disability;
or
• the person who acquires the training service receives an amount from the federal, provincial or territorial government or from an organization administering a government program targeted at assisting individuals with a disorder or disability for the training.
Please note that the financial assistance contemplated by subparagraph 14(b)(iii) only has to subsidize a portion of the total amount charged by Corporation for the training service in order for the second or third requirement of subparagraph 14(b)(iii) to be met.
To summarize, where the requirements of paragraph 14(a) are met and one of the circumstances described in paragraph 14(b) exists, the supply of a training service that is specially designed to assist an individual with a disorder or disability is exempt under section 14. Where it is necessary to consider subparagraph 14(b)(iii) in order to determine if one of the circumstances in paragraph 14(b) exists, only one of the three conditions outlined in clauses (A) to (C) of subparagraph 14(b)(iii) must be met in order for subparagraph 14(b)(iii) to apply and the supply to be exempt.
(i) [Activity A]
For purposes of section 14 of Part II of Schedule V, a supply of [training] and support services, comprised of child behavioural management, [...], assistance with personal care, parent coaching and respite services, made under [Activity A] is considered to be a supply of a training service that consists of training that is specially designed to assist an individual with a disorder or disability in coping with the effects of the disorder or disability or to alleviate or eliminate those effects. Further, under [Activity A], the training is provided to a particular child with a developmental disorder or to an individual who provides personal care or supervision to such an individual otherwise than in a professional capacity and, therefore, the requirements of paragraph 14(a) are met.
Accordingly, section 14 will exempt a supply of [training] and support services made by Corporation under [Activity A] where one of the circumstances described in paragraph 14(b) exists. In other words, where the requirements of either subparagraph 14(b)(i) or (iii) are met, the supply of [training] and support services under [Activity A] is exempt under section 14.
The requirements of subparagraph 14(b)(i) will be met, for example, where a paediatrician or child psychiatrist has, acting in the course of a professional-client relationship, certified in writing that the training provided under [Activity A] is an appropriate means to assist a child with a developmental disorder in coping with the effects of the disorder. In this circumstance, a supply of [training] and support services by Corporation under [Activity A] is exempt under section 14.
Alternatively, the requirements of subparagraph 14(b)(iii) will be met where Corporation receives an amount as 'third party funding' from a parent or caregiver of a child with a developmental disorder who received the amount from [Ministry 1] or [Ministry 2], and Corporation receives satisfactory evidence that the amount was paid by [Ministry 1] or [Ministry 2] for the purpose of the acquisition of the training service under [Activity A]. Where the requirements of subparagraph 14(b)(iii) are met, the supply of [training] and support services by Corporation under [Activity A] is exempt under section 14.
The requirements of subparagraph 14(b)(iii) will also be met in circumstances where Corporation is paid an amount directly by a government (e.g., where Corporation is paid directly by [Ministry 2]) or by an organization administering a government program targeted at assisting individuals with a disorder or disability pursuant to a specific contract to provide [training] and support services under [Activity A] to a child with a developmental disorder.
On the other hand, where the requirements of paragraph 14(b) are not met, a supply of [training] and support services made by Corporation under [Activity A] is not exempt under section 14 of Part II of Schedule V and is, therefore, a taxable supply that is subject to GST/HST (at a rate of [...]% for supplies made in [Province X]).
(ii) [Activity B]
For purposes of section 14 of Part II of Schedule V, a supply of [training] services made under [Activity B] is considered to be a supply of a training service that consists of training that is specially designed to assist an individual with a disorder or disability in coping with the effects of the disorder or disability or to alleviate or eliminate those effects. Under [Activity B], the training is provided to children who have been diagnosed with one or more developmental disorders that the program is designed to assist with.
[Activity B] is specially designed to assist the children in coping with the effects of a developmental disorder [...]. Through the training provided under [Activity B], a child with a developmental disorder is given an opportunity to enhance a variety of behavioural or organizational skills [...]. In the context of the [...] of [Activity B], the instruction-based activities [...] form an integral part of the coaching or training of the child as they are designed to assist the child in functioning in a variety of social situations [...]. The nature of [Activity B] itself allows Corporation staff to focus on assisting the children in meeting their goals [...].
Accordingly, the requirements of paragraph 14(a) are met and section 14 will exempt a supply of [training] services made by Corporation under [Activity B] where one of the circumstances described in paragraph 14(b) exists.
As with [Activity A], the requirements of subparagraph 14(b)(i) will be met with respect to [Activity B] where, for example, a paediatrician or child psychiatrist has, acting in the course of a professional-client relationship, certified in writing that the training provided under [Activity B] is an appropriate means to assist a child with a developmental disorder in coping with the effects of the disorder. The requirements of subparagraph 14(b)(iii) will be met where Corporation receives an amount as 'third party funding' from a parent or caregiver of a child with a developmental disorder who received the amount from [Ministry 1] or[Ministry 2], and Corporation receives satisfactory evidence that the amount was paid by [Ministry 1] or [Ministry 2] for the purpose of the acquisition of the training service under [Activity B].
We note that specially designed training does not have to be provided on a one-on-one basis in order to fall within section 14. A supply of [training] services made by Corporation under [Activity B] is exempt under section 14 where the requirements of either subparagraph 14(b)(i) or (iii) are met, whether the training is provided on a one-on-one basis or in a group setting.
On the other hand, where the requirements of paragraph 14(b) are not met, a supply of [training] services made by Corporation under [Activity B] is not exempt under section 14 of Part II of Schedule V and is, therefore, a taxable supply that is subject to GST/HST (at a rate of [...]% for supplies made in Province X).
(iii) [Activity C]
For the reasons described above under "ii. [Activity C]", a supply of [training] services under [Activity C] [...] is exempt under section 14 of part II of Schedule V where one of the requirements of paragraph (b) is met. In other words, where the requirements of either subparagraph 14(b)(i) or (iii) are met, the supply of [training] services under [Activity C] is exempt under section 14.
(v) [Activity E]
Section 1 of Part IV of Schedule V
Section 1 of Part IV of Schedule V exempts a supply of child care services, the primary purpose of which is to provide care and supervision to children 14 years of age or under for periods normally less than 24 hours per day, but not including a supply of a service of supervising an unaccompanied child made by a person in connection with a taxable supply by that person of a passenger transportation service.
The supply of child care services under [Activity E], which has a primary purpose of providing care and supervision to children 14 years of age or under for periods of less than 24 hours per day, is exempt under section 1 of Part IV of Schedule V.
Interpretation Given
(iv) [Activity D]
At [Activity D], [training] services are provided to children who have been diagnosed with one or more developmental disorders that [Activity D] are designed to assist with. [Activity D] involve[s] the delivery of training, coaching or instruction in social skills and behaviour management concepts [...]. [...] [Activity D] is spent [...] establishing goals and discussing expectations and acceptable versus unacceptable behaviour, and this is followed by the delivery of training or coaching [...]. The [training] services provided under [Activity D] are designed to assist the child with the developmental disorder in functioning in a variety of social settings and include training or coaching in concepts such as interacting with others and respecting personal boundaries.
Unlike [Activity B] and [Activity C], the training, coaching or instruction provided at the [Activity D] does not follow a [...] program of activities, specifically designed to assist a child in coping with the effects of a developmental disorder or alleviate or eliminate those effects.
In order to be exempt under section 14 of Part II of Schedule V, it must first be demonstrated that a supply of [training] services made under [Activity D] is a supply of a training service that meets the requirements of paragraph 14(a).
A supply of [training] services made by Corporation under [Activity D] can be considered to be a supply of a training service that consists of training that is specially designed to assist an individual (a child in this case) with a disorder or disability in coping with the effects of the disorder or disability or to alleviate or eliminate those effects where:
• Corporation has identified, through an evaluation or assessment of the child, the specific challenges or social or behavioural difficulties of the child in respect of one or more developmental disorders of the child;
• Corporation works with the child, and, where applicable, the parent or caregiver, to establish goals and expectations that relate to the specific challenges or difficulties of the child, as identified through the evaluation or assessment of the child;
• It is demonstrated that there is a reasonable link between the goals and expectations established for the child, which relate to the child's developmental disorder, and customized training, coaching or instruction provided to the child under [Activity D];
• The activities engaged in by the children under [Activity D] include, throughout a significant portion of the activity, training, coaching or instruction that is linked to the goals or expectations of the child and is specially designed to assist a child with a developmental disorder in coping with the effects of the disorder or to alleviate or eliminate those effects; and
• The training, coaching or instruction provided under [Activity D] is not similar to that which is ordinarily given to persons who do not have a disorder or disability and who do not provide care or supervision to an individual with a disorder or disability.
The presence of the above factors would be indicative of a supply of a training service that consists of training that is specially designed to assist an individual with a disorder or disability and, therefore, the requirements of paragraph 14(a) would be met. Accordingly, the supply of such [training] services under [Activity D] would be exempt under section 14 where the requirements of either subparagraph 14(b)(i) or (iii) are met.
The requirements of subparagraph 14(b)(i) will be met, for example, where a paediatrician or child psychiatrist has, acting in the course of a professional-client relationship, certified in writing that the training provided under [Activity D] is an appropriate means to assist a child with a developmental disorder in coping with the effects of the disorder. In this situation, a supply of [training] services by Corporation under [Activity D], in circumstances in which the above factors are present, is exempt under section 14.
Alternatively, the requirements of subparagraph 14(b)(iii) will be met where Corporation receives an amount as 'third party funding' from a parent or caregiver of a child with a developmental disorder who received the amount from [Ministry 1] or [Ministry 2], and Corporation receives satisfactory evidence that the amount was paid by [Ministry 1] or [Ministry 2] for the purpose of the acquisition of the [training] and support service under [Activity D]. Where the requirements of subparagraph 14(b)(iii) are met, the supply of [training] and support services by Corporation under [Activity D], in circumstances in which the factors noted above are present, is exempt under section 14.
On the other hand, where the requirements of paragraph 14(b) are not met, a supply of [training] services made by Corporation under [Activity D] is not exempt under section 14 of Part II of Schedule V and is, therefore, a taxable supply that is subject to GST/HST (at a rate of [...]% for supplies made in [Province X]).
Additional information concerning the application of GST/HST to a supply of training that is specially designed to assist an individual with a disorder or disability can be found in GST/HST Info Sheet GI-112 Specially Designed Training to Assist Individuals with a Disorder or Disability, available online at www.cra-arc.gc.ca.
ADDITIONAL COMMENTS
In addition to section 14 of Part II and section 1 of Part IV, section 7.2 of Part II of Schedule V may also be relevant to certain services provided by Corporation.
Section 7.2 of Part II of Schedule V
Section 7.2 of Part II of Schedule V exempts a supply of a service rendered in the practice of the profession of social work where
(a) the service is rendered to an individual within a professional-client relationship between the particular individual who renders the service and the individual and is provided for the prevention, assessment or remediation of, or to assist the individual in coping with, a physical, emotional, behavioural or mental disorder or disability of the individual or of another individual to whom the individual is related or to whom the individual provides care or supervision otherwise than in a professional capacity; and
(b) either
(i) if the particular individual is required to be licensed or otherwise certified to practise the profession of social work in the province in which the service is supplied, the particular individual is so licensed or certified, or
(ii) if the particular individual is not required to be licensed or otherwise certified to practise that profession in that province, the particular individual has the qualifications equivalent to those necessary to be licensed or certified to practise that profession in a province in which such a requirement exists.
In accordance with section 7.2 of Part II of Schedule V, a supply of a service rendered in the profession of the practice of social work is exempt where the service is rendered to an individual within a professional-client relationship between the social worker and the individual and is provided for the prevention, assessment or remediation of a physical, emotional, behavioural, or mental disorder or disability of the individual, or to assist the individual in coping with a disorder or disability.
Section 7.2 applies not only to services rendered to the individual with a disorder or disability, but also to services rendered to an individual who is a relative or caregiver of an individual with a disorder or disability, provided the services fall within the practice of the profession of social work and are rendered within a professional-client relationship. The exemption does not, however, apply to services provided by a social worker to an individual who provides care or supervision to the individual with a disorder or disability in a professional capacity, such as another social worker, a teacher or a personal care aide.
We understand that Corporation employs at least one registered social worker. Where the requirements of section 7.2 of Part II of Schedule V are met, a supply made by Corporation of a service rendered by a registered social worker in the practice of the profession of social work is also exempt.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-954-4289. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Brian Olsen, CGA
Municipalities and Health Care Services Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
Email this Content